Star trading17 Mar 2020 08:00
I've been thinking about star after yesterday. I was thinking about the trading on it over the years. People are quick to blame factors like corrupt/sneaky mm's, shorters or people not holding. I've never heard people say sneaky mm for putting a sell on nex
As I've been in star many years I and believe that it's nothing to do with any of the above. I think that there is a few select group of posters/holders with large holdings who trade this aggressively. How do you trade an illiquid share?
You drip drip drip information, making others feel like they are ahead of the curve, encouraging them to buy whilst the larger holders sell and then buy back. Only margins but over years it has a huge effect
I think this is the case, as it's not easy accumulate 5-10mln (£100k-£200k at the claimed average) of shares. Especially in an illiquid share, without having an immediate impact on sp.
I've also worked in finance selling investments to seriously wealthy people, and people who have that wealthy don't get there by locking up money in high risk shares for years and years. I remember someone being asked, why don't you want to go over 3%? because I want to keep my anonymity. I think it was so others didn't know when they were trading?
It's clever, "the select" are extremely positive consistently, anyone saying anything other is a deramper or has an agenda. Trying to get people to buy, because of a drip drip drip of into, followed by positivity? Then there's a drop, the above trading strategy could explain.
In the meantime, what's left are large groups of holders with overweight holdings at high averages, why? Because they've paid for the larger holdings of the "select", and when the company does come good, guess who gets the greatest benefit?